glossary - MediaHedge Underwriting Knowledgebase

# MediaHedge Film-Finance Glossary Use this glossary to translate recurring film-finance, credit and servicing terms into the meaning used throughout the MediaHedge knowledgebase. ## A-C **Account control agreement** - A qualifying arrangement with the depositary bank that may give the secured party control over a deposit account for perfection purposes. It does not itself define the economic waterfall. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **Advance rate** - The permitted loan exposure as a percentage of verified eligible value for a collateral category. It is a sizing control, not a statement of expected recovery. See [[wiki/concepts/loan-sizing|Loan Sizing]]. **Article 9** - The secured-transactions part of the Uniform Commercial Code as enacted in the applicable US jurisdiction. In this wiki, references to Article 9 account control concern legal control of a deposit account, not the CAMA payment order. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **Borrowing base** - The aggregate permitted exposure derived from eligible collateral after applicable haircuts, exclusions and concentration rules. See [[wiki/concepts/loan-sizing|Loan Sizing]]. **CAMA** - Collection account management agreement. It appoints an independent collection account manager and governs receipt allocation and distribution mechanics; it is distinct from deposit-account control. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **Cash multiple / MOIC** - Total cash receipts divided by invested capital. It measures magnitude but ignores timing. See [[wiki/concepts/financier-return-economics|Return Economics]]. **Collateral eligibility** - The threshold determination that an asset is owned, documented, enforceable, non-duplicative and capable of supporting exposure under policy. **Completion guaranty** - A contractual instrument addressing specified completion and delivery risks, often including takeover rights. It does not ordinarily cover distributor solvency, tax-credit shortfalls or commercial performance. See [[wiki/concepts/completion-protection|Completion Protection]]. **Cost to complete** - The current estimate of remaining cash required to finish and deliver the production. ## D-L **Delivery** - Contractually conforming completion and tender of required materials. Delivery is a shared dependency for many receivable and rights-based repayment paths. **Eligible net value** - Headline value after removing unsupported amounts, deductions, conditions, overlap, timing mismatches and other ineligible components. **Expected loss** - A forward-looking credit cost reflecting default probability, loss severity, recovery timing and related expense. **FilmHedge** - FilmHedge, LLC is the wholly owned operating subsidiary of MediaHedge, Inc. See [[wiki/entities/mediahedge|MediaHedge]]. **Forward flow** - A relationship in which an originator supplies eligible assets under agreed purchase or funding mechanics while a financing partner provides capital and holds defined ownership, governance and economic rights. See [[wiki/concepts/forward-flow-governance|Financing-Partner Governance]]. **Full financing** - A condition in which verified, timely financing sources and committed equity cover all production and delivery uses, financing costs, required reserves and contingency. See [[wiki/concepts/full-financing|Full Financing]]. **Gap / unsold-rights value** - Collateral value associated with rights not yet contracted for sale. It is more market-dependent than a verified contracted receivable and receives more conservative advance treatment and explicit concentration review under the approved transaction and funding mandate. See [[wiki/concepts/gap-collateral|Gap Collateral]]. **Gross loan-to-budget** - Gross loan exposure divided by the production budget under the applicable policy definition. **Holdback** - An amount withheld or reserved until specified conditions are met. In incentive valuation it can reduce or delay proceeds; in a collection waterfall it may be a contractual reserve. The governing program or agreement defines its purpose and release conditions. See [[wiki/concepts/tax-credit-collateral|Tax-Credit Collateral]] and [[wiki/concepts/cash-control-and-waterfalls|Cash Control]]. **Intercreditor agreement** - An agreement among creditors allocating matters such as payment priority, enforcement, consent and recoveries. Its scope depends on the executed terms; an interparty agreement may address a broader group of stakeholders. See [[wiki/concepts/security-package|Security Package]] and [[wiki/concepts/defaults-workouts-and-recoveries|Workouts]]. **Interparty agreement** - The document allocating authority, economics, expenses, enforcement and recovery rights among financing stakeholders. **Institutional private credit** - Debt or structured capital commonly underwritten against companies, libraries, catalogues, contractual revenues, enterprise value or diversified portfolios. It can overlap with media lending while differing from a short-term single-production receivables loan. See [[wiki/syntheses/media-finance-lending-landscape|Media Finance Lending Landscape]]. **Lloyd's market** - A specialist insurance and reinsurance marketplace in which syndicates underwrite risk. Lloyd's is not one insurance company; the policy and schedule should identify the subscribing risk bearers and their shares. See [[wiki/concepts/production-insurance|Production Insurance]]. **Lockbox** - A designated payment-collection arrangement used to route receipts to an agreed account. Its label alone does not establish legal account control or payment priority. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **LTV** - Loan-to-value. In this corpus, aggregate exposure relative to eligible collateral value, subject to definition and policy limits. ## M-R **MG** - Minimum guarantee, commonly a contracted distributor commitment that may become payable after conforming delivery and satisfaction of other conditions. See [[wiki/concepts/pre-sales-collateral|Pre-Sales Collateral]]. **MH Score** - Classifies the final approved blended interest rate under approved price bands, after the underwriting decision. It does not set the rate and is distinct from the Risk Score and Obligor Score. No bands or formulas are reproduced here. **MH Risk Score / Risk Score** - Summarizes the broader transaction risk assessment to inform human underwriting judgment. It does not mechanically set pricing, collateral eligibility, advance rates or approval. **Obligor Score** - Territory- and legal-entity-specific counterparty guidance used as one input to deal review. A counterparty score alone does not determine approval, interest or MH Score. **MGU** - Managing general underwriter. A business with delegated underwriting or related authority for an insurer. The MGU or service brand may not be the legal entity that issues the policy, guaranty or bond. See [[wiki/syntheses/media-finance-lending-landscape|Media Finance Lending Landscape]]. **Notice of assignment / payment direction** - Notice instructing an obligor where to pay and establishing specified notice or cure mechanics. It does not automatically eliminate defenses, setoff or amendment rights. **Nonaccrual** - Accounting treatment separating interest that is contractually due from income whose collectibility is no longer sufficiently probable. **Perfection** - The legal step making a security interest effective against relevant third parties, which may require filing, possession, control, recordation or local-law action depending on the asset. See [[wiki/concepts/security-package|Security Package]]. **Penal sum** - The stated maximum liability under a surety bond. It may be an aggregate ceiling and may not include interest, fees or other losses unless the instrument says so. **Pre-sale** - An executed distribution or license agreement entered before completion that grants defined rights in exchange for a minimum guarantee or other payment obligation. See [[wiki/concepts/pre-sales-collateral|Pre-Sales Collateral]]. **Protective advance** - Additional capital advanced during stress to preserve collateral or completion value. It should be governed by an explicit net-value test and approval authority. See [[wiki/concepts/defaults-workouts-and-recoveries|Defaults, Workouts and Recoveries]]. **Recapture** - Recovery of a tax benefit previously allowed or used when the governing rules permit it. It is distinct from an initial estimate being reduced or a payment arriving late. The liable party, trigger and remedy depend on the program and transaction. See [[wiki/concepts/tax-credit-collateral|Tax-Credit Collateral]]. **Recovery accounting** - Tracking gross collections, enforcement and servicing expenses, interest treatment, charge-offs, timing and net recovery by source. See [[wiki/concepts/defaults-workouts-and-recoveries|Defaults, Workouts and Recoveries]]. **Reserved matter** - A decision that exceeds ordinary delegated servicing authority and requires the specified investor approval. See [[wiki/concepts/forward-flow-governance|Financing-Partner Governance]]. **Risk carrier** - The legal entity or subscribed market participant that bears the covered loss under the executed policy, guaranty or bond, as distinct from a broker, MGU, risk manager, reinsurer or service brand. ## S-X **Sales estimate** - A forecast of what unsold rights may generate by territory, medium or window. It is not an executed receivable or a guaranteed sale. See [[wiki/concepts/gap-collateral|Gap Collateral]]. **Source-to-account matrix** - A mapping of each obligor, contract, territory, currency and expected payment date to the approved collection destination. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **Specialty project lender** - A lender whose products are organized around project-level collateral such as tax incentives, pre-sales, minimum guarantees, bridge takeouts, gap or finishing needs. Product scope, lien position and legal lending vehicle remain transaction-specific. See [[wiki/syntheses/media-finance-lending-landscape|Media Finance Lending Landscape]]. **Surety bond** - A three-party instrument under which a surety conditionally backs a principal's specifically described duty for an obligee, up to the stated terms and limit. See [[wiki/concepts/surety-credit-protection|Surety and Credit Protection]]. **Tax-credit receivable** - Expected value arising from a production incentive program. It remains conditional on program, claimant, spend, filing, audit and realization requirements until paid or monetized. See [[wiki/concepts/tax-credit-collateral|Tax-Credit Collateral]]. **True sale** - A legal characterization of an asset transfer that can affect ownership and insolvency treatment; it is distinct from a participation or secured financing. **Waterfall** - Contractual priority for applying collections among taxes or approved costs, senior principal, interest, fees and subordinate distributions. See [[wiki/concepts/cash-control-and-waterfalls|Cash Control and Waterfalls]]. **XIRR** - Annualized return calculated from actual dated cash flows. It is sensitive to draw, repayment, fee, extension and recovery timing. See [[wiki/concepts/financier-return-economics|Return Economics]].  ## Legal Context for These Terms New York's [UCC deposit-account control provision](https://www.nysenate.gov/legislation/laws/UCC/9-104) illustrates the distinction between legally defined control and collection administration. Its [subordination provision](https://www.nysenate.gov/legislation/laws/UCC/9-339) recognizes agreed subordination by a party entitled to priority. Louisiana's [motion-picture production tax-credit statute](https://www.legis.la.gov/legis/Law.aspx?d=102363) illustrates program-specific recapture. These are jurisdiction-specific examples, not conclusions about another state's law or any financing. Links checked: 2026-09-30. ## Usage Note Definitions here summarize the MediaHedge framework. Transaction documents and applicable law control their meaning in any specific financing. See [[wiki/evidence-and-limitations|Evidence and Limitations]] for additional context. ## Continue Exploring [[MediaHedge Knowledgebase|Home]] · [[wiki/syntheses/financier-diligence-route|Financier’s Guide]] · [[wiki/overview|How the Model Works]] · [[wiki/syntheses/media-finance-lending-landscape|Market Landscape]] · [[wiki/syntheses/site-navigator|Site Navigator]]